Have you ever thought that what you see is sometimes different from what you are really seeing?
The famous Arcimboldo's "Vegetables In A Bowl Or The Gardener" painting is a clear example ....

July 29, 2011

MAJORITY OF CONSUMERS PREFER ORGANIC FOODS

Fifty-eight percent of Americans say they prefer organic over conventionally produced foods, according to the most recent Thomson Reuters-NPR Health Poll.

Young consumers express the strongest preference for organics, with 63% of respondents under age 35 saying that they choose organics when possible. Also, 64% of respondents with a bachelor’s degree or more said that they prefer organics.

Of the shoppers who preferred organics, 36% said that they buy organics in an effort to support local farmers markets, while 34% said they chose organics because they want to avoid exposure to toxins

DAILY INTAKE OF ADDED SUGAR HAS DROPPED IN US

Americans consumed about 2.7 ounces of added sugar daily in 2007 and 2008, a decrease from 3.5 ounces in 1999 and 2000, according to a study in The American Journal of Clinical Nutrition.

Federal and private efforts to warn consumers of sugar's adverse effects, including obesity, might have played a role in reducing intake.
Source: Reuters

EU: EIGHT OUT OF TEN HEALTH CLAIMS UNJUSTIFIED

Europe's food safety watchdog - the European Food Safety Authority (EFSA) - rejected 80% of proposed food-related general health claims in its three-year assessment applications from manufacturers.

The EFSA has transferred its opinions on 2,758 claims to the European Commission, which will make final judgments this year on the legality of these claims

KROGER NAMES NEW RALPHS PRESIDENT


Kroger has appointed Donna Giordano as President of its Ralphs division. She succeeds Mike Donnelly, who was recently promoted to Senior Vice President of Merchandising for Kroger.

Giordano has served as President of Kroger’s Quality Food Centers (QFC) division, based in Seattle, Washington, since 2002

July 28, 2011

WHOLE FOODS 3Q NET UP 35%, RAISES 2011 OUTLOOK

Whole Foods Market Inc.'s fiscal third-quarter earnings rose 35% as the natural-foods supermarket gained market share at a quick clip, and it again raised its full-year outlook.

A combination of a better price image and strong selection resulted in an increase in comparable-store sales of 8.4% for the fiscal third quarter, once again far exceeding sales results at other public companies.

Net income for the 12-week quarter, which ended July 3, rose 34.6% to $88.5 million and sales climbed 10.9% to $2.4 billion. For the year to date, net income increased 41.8% to $$267.1 million and sales jumped 12.2% to $7.8 billion, with comparable sales up 8.5%.

Whole Foods projected earnings of $1.91 to $1.92 a share, from its May prediction for $1.87 to $1.90 and it predicted sales growth of 12.2% to 12.4% versus the prior projection for 11.7% to 12.6%.

Walter Robb, the company's co-chief executive, said Whole Foods was continuing to gain market share at a faster rate than most publicly traded food retailers, which he said was reflected in the third quarter's same-store sales growth of 8.4%, a stronger rate than in the second quarter.
In the third quarter, gross margin crept up to 35.4% from 35.1% in the latest period. In the second quarter, margin was 35.6%.

WALMART OPENS FIRST URBAN STORE IN CHICAGO

Walmart opened its first small convenience store in Chicago yesterday amid hopes of finally cracking the urban US market, Reuters reports.

The new Walmart Express store is located in the city's Chatham neighborhood, and is less than one-tenth the size of a traditional Walmart supercentre. Walmart plans to open four more Express outlets in Chicago, as well as three larger stores and two more supercentres.

"I think it's fair to say there's a multibillion dollar growth opportunity in a lot of these cities and Walmart just hasn't had the right format to penetrate," Natalie Berg, global research director at Planet Retail, told the news agency. "If they can't get the store economics right then the format really doesn't have a future. There’s going to be a lot of pressure on keeping costs down."

MIKE DUKE SENATE FINANCE COMMITTEE CORPORATE TAX REFORM TESTIMONY

Read the testimony of Mike Duke President & Chief Executive Officer Walmart before the Committee on Finance United States Senate on How the Tax Code Affects Hiring, Businesses and Economic Growth.

Read here

FOOD, DRINK EXECS EXPECT M&A IN NEXT TWO YEARS

Two out of three U.S. food and beverage executives see their companies being involved in a merger or acquisition over the next two years, as they seek to streamline portfolios and put cash reserves to work.

According to a survey by U.S. audit firm KPMG, 67% of executives in the U.S. said it is likely their companies will participate in merger activity over the next two years, with a rough split between likely buyers and likely sellers. One of the main motivations for sellers is that they probably have brands they do not want to invest in anymore, but were unable to unload during the downturn, said Patrick Dolan, the leader of KPMG's consumer markets and food and beverage practice in the United States.

"It's not like they're desperate to get rid of them but they really do want to reinvest the money in some brands that make more sense for their strategy," Dolan said in an interview.
He said sellers were getting more realistic about the prices their assets were likely to fetch, making it easier for sellers and buyers to agree. He said buyers were being motivated by pressure from shareholders to make use of cash piles that are otherwise not earning high returns.
The consumer goods sector has always been fertile ground for mergers and acquisitions, but mega-deals like Kraft Foods Inc's purchase of Cadbury have been rare since the economic downturn.
Clorox is the object of a takeover bid by billionaire investor Carl Icahn, while Post cereals maker Ralcorp Holdings Inc recently rebuffed an offer from ConAgra Foods.

"It's not mega, mega deals, but I think it's pruning the product and market aspects of their portfolio. Then, they'll be after geographic expansion, typically in the emerging markets, and using acquisitions to get into new products and services," Dolan said.

About 39% of respondents - senior executives at mid- and large-cap food and beverage companies such as Coca-Cola Co and Kraft - said they expected to deploy cash this year, with another 39% saying they expected to do so next year.

In terms of hiring, 46% of the 101 respondents said they planned to add jobs next year, but 38% are calling for an increase of less than 6%.
Source: Reuters

July 27, 2011

MCDONALD’S TRIMS ITS HAPPY MEAL


The company announced Tuesday that it would more than halve the amount of French fries and add fruit to its popular children’s meal in an effort to reduce the overall calorie count by 20%.

US: 2012 RETAIL INFLATION AT 3%-4%

Food retail inflation is expected to persist at slightly lower levels through 2012, according to a forecast this week from the US Department of Agriculture (USDA).

The USDA projected food-cost increases at retail of about 3% to 4% in 2012, slightly down from a projected 3.5% to 4.5% this year.

Prices at restaurants, expected to increase about 3% to 4% this year, are expected to increase less than that next year, about 2% to 3%.

SUPERVALU REPORTS FIRST QUARTER FISCAL 2012 EARNINGS

Supervalu reported first quarter fiscal 2012 net sales of $11.1 billion and net earnings of $74 million. In the first quarter of fiscal 2011, net sales were $11.5 billion and net earnings were $67 million. When adjusted for $25 million in net after-tax charges primarily related to retail market exits in Connecticut and Cincinnati as well as the impact of a labor dispute at Shaw's, first quarter fiscal 2011 net earnings were $92 million.

First quarter retail food net sales were $8.6 billion compared to $9 billion last year. The change in net sales primarily reflects identical store sales of negative 3.9% and previously announced market exits. Total retail square footage was 63.5 million, a 2.1% decrease from the first quarter of fiscal 2011 primarily as a result of fiscal 2011 market exits. Excluding the impact of market exits and store closures, total retail square footage increased 1.8% compared to the first quarter of fiscal 2011.

Gross profit margin in the first quarter was $2.5 billion, or 22.1% of net sales, compared to $2.6 billion or 22.5% last year. The decrease in gross margin as a percent of net sales reflects a higher LIFO charge, the impact of higher fuel sales, as well as the mix impact resulting from the divestiture of Total Logistic Control in the fourth quarter of fiscal 2011. In addition, the benefits of promotional effectiveness and reduced shrink fully funded price investments in the quarter.
Selling and administrative expenses in the first quarter were $2.2 billion, or 19.6% of net sales, compared to $2.3 billion, or 19.9% of net sales last year. The decrease in selling and administrative expenses as a percent of net sales reflects savings achieved from cost reduction initiatives, the benefit of higher fuel sales and a reduction in corporate expenses for non-operating properties. These benefits were partially offset by the impact of sales deleveraging and increases in employee-related expenses.

Operating earnings for the first quarter were $280 million, or 2.5% of net sales, compared to $301 million, or 2.6% of net sales last year. Retail food operating earnings were $219 million, or 2.5% of net sales. Last year's retail food operating earnings were $251 million, or 2.8% of net sales, and included $21 million in net pre-tax charges primarily related to retail market exits in Connecticut and Cincinnati, as well as the impact of the labor dispute at Shaw's. When adjusting for these items, last year's retail food operating earnings were $272 million, or 3% of net sales. The change in retail food operating earnings as a percent of net sales was the result of a higher LIFO charge and reduced sales leverage on operating expenses, which were partially offset by cost reduction initiatives.

AMAZONFRESH LAUNCHES ANDROID APP

On-line retailer Amazon has just launched a new app (currently only in the Seattle market) to support AmazonFresh on Android phones.

Users can shop complete grocery and selected Amazon.com aisles, choose home delivery times, view past purchases, and place an order. The app also enables users to scan the barcodes of products and automatically add them to a shopping list.

The app allows shoppers to: Choose time slots for doorstep and attended home delivery; Add items from past purchases; Efficient batch searching using the My Quicklist feature, an optional feature under “Settings” lets users include past purchases in search results for added convenience.
Source: Progressive Grocer

FORTIFICATION DRIVES CONSUMER DEFINITION OF ‘HEALTHY’

According to the 19th annual Shopping for Health survey from the Food Marketing Institute (FMI) and Prevention magazine, consumer attitudes about what defines a food as healthy are changing. They are moving away from consideration of undesirable characteristics, such as high levels of saturated fat, sugar, sodium or calories, and consumers are starting to pay greater attention to inclusion of healthy ingredients and fortification with specific nutrients.

The poll - of a nationally representative sample of 1,579 U.S. adult primary grocery shoppers surveyed in November and December last year - found that fiber was the most sought-after ingredient, with 44% of respondents saying they look for it as a mark of healthfulness. This was followed by whole grain (36%), protein (27%), Omega-3 (23%) and antioxidants (16%).

In terms of health claims, heart health topped the list of on-pack claims that appeal to consumers, with 73% saying that heart health claims matter to them when buying foods, followed by more energy (71%), digestive health (66%), and improving mind health (65%).

President and CEO for FMI Leslie G. Sarasin said: “As schedules become busier and awareness of health issues increase, the consumer demand for healthful options that are quick and easy for families will grow.”

However, although the survey found consumers were actively looking for healthy ingredients more often than they were seeking to avoid less healthy ingredients, products with reduced sodium, fat or calories also saw higher demand compared to a year earlier.

Forty-two percent of respondents said they bought more low-sodium foods in 2010, up 8 percentage points on 2009; 41% said they bought more low-fat foods, up 4 points; and 28% said they bought more lower/less/zero calorie foods, also up 4 points.

July 26, 2011

WALMART MARKET ENTERS NEW ENGLAND

Walmart is set to open its first Market grocery store in New England, with the outlet expected to open within a year, Boston.com reports. The retailer is ready to sign a lease for a space in Somerville, Boston, and the store will be bannered Walmart Market.

The move marks a change in strategy for the company, as it looks to focus its efforts on opening smaller stores in urban areas, with New England a major focus for expansion.

SAFEWAY ROLLS OUT ‘DEAL MATCH’ IN CHICAGO

Dominick’s, a division of Safeway began matching competitors’ discount deals through its “Deal Match” program on July 21
Dominick’s website home page flags the program as new for Dominick’s.

Dominick’s loyalty club cardholders are able to get the same deals at Dominick’s on selected items as advertised by its competitors.
Source: Supermarket News

UK STUDY HIGHLIGHTS TEENAGE HEALTH

Teenage girls in the UK are on average only eating half of their recommended daily portions of fruit and vegetables, potentially putting them at risk of developing long-term health problems, according to an official study.

The UK National Diet and Nutrition Survey, published by the country’s department of health, found that due to the low consumption of fresh produce, only 56% of adolescent girls were getting enough iron in their diet.

Although both teenage boys and girls are failing to get their recommended five-a-day portions of fruits and vegetables, researchers concluded that girls eat on average half a portion less each day than boys.

With most still consuming far too many products high in saturated fats and sugar, the report said that a generation of girls were storing up a number of potential health problems for later life, such as heart disease and some cancers.

SYMPONYIRI, WALMART CREATE DATA PORTAL

SymphonyIRI Group said it will partner with Walmart to create a new collaborative planning platform called Customer Advantage.

The new platform "delivers unique, custom, Walmart-focused shopper insights," the data-analysis firm said in a prepared statement. It will provide a "dedicated shopper insights portal of customizable reports shared between Walmart and its supplier partners."

"The Customer Advantage solution identifies and sizes opportunities among shopper segments, trips and categories that will better enable Walmart and its supplier partners to grow their businesses through a deeper understanding of our customers," said Cindy Davis, executive vice president of Walmart global customer insights, in a prepared statement.

"SymphonyIRI has a unique understanding of collaborative planning challenges and is well positioned to enable closer alignment between manufacturers and retailers," added John G. Freeland, SymphonyIRI president and chief executive officer.
Source: Supermarket News

July 25, 2011

PROPOSAL ON KIDS MARKETING SETS “VIRTUALLY UNACHIEVABLE” STANDARDS

Government proposals designed to protect children from junk food marketing are “based on nutrition standards that are virtually unachievable”, according to a group of Campbell Soup employees.

Staff at the soup giant was commenting on proposals - published in April by a working group representing several government agencies - that would prevent firms marketing foods to kids unless they meet strict new nutritional standards.

While many manufacturers are channeling their views via trade associations, several Campbell employees have also submitted comments individually expressing their concerns during the consultation period.

The Campbell staff says: “Although these guidelines seek to promote a worthy goal in which we wholeheartedly share, they do so in a manner that is misguided and that will be counterproductive."

In practice, the “draconian” thresholds for sodium, fat and sugars meant a high proportion of foods currently on the market would not meet the standards, while the proposed nutritional principles "describe products that manufacturers will not produce because children and teens will not eat them.”

In addition, the definition of advertising and marketing was so broad, the proposals could also “substantially limit communications intended for adults”, they claimed.

“In fact, if as little as 20% of the audience for a communication is composed of persons aged 12-17, the communication will be considered ‘marketing to children’ and must therefore satisfy the guidelines’ draconian standards. As a result, many communications plainly intended for adults will no longer be permissible.”

COSTCO MANDATES PRODUCE TESTING

New pathogen testing requirements for produce companies supplying Costco Wholesale Corp. may be the first of their kind, but large suppliers say they were already conducting the tests.

Craig Wilson, Costco’s vice president of quality assurance and food safety, said July 18 that the company began requiring its produce suppliers to test finished products for the “Big 6” E. coli strains “a couple of months ago.”
He said the company added the rare strain O104:H4 that recently sickened more than 3,900 people in Europe to its mandatory test list “in the past two or three weeks.”
“The tests don’t make the food safer, but they do tell us if the vendors’ food safety programs are working,” Wilson said.
Source: The Packer

NIELSEN SIGNS WALMART AGREEMENT

Nielsen, the leading global provider of consumer information and market analysis, has announced that it has entered into a cooperation agreement with Walmart, the world's leading retail group.

According to the group, the agreement will see Nielsen receive and analyze information from the retailer's US stores, and marks the return of Walmart to the consumer packaged goods industry's information sharing model.

The majority of US food, drug, mass convenience and dollar stores already provide Nielsen with sales information, with the addition of Walmart enabling Nielsen to offer a more precise view of consumer purchase activity.

Nielsen will work with Walmart's store network to report sales information and incorporate it into existing market reads, offering a better and more accurate coverage for all participating retailers and manufacturers by giving insights into sales volumes, pricing, merchandising and promotions.

July 22, 2011

SAFEWAY EARNINGS “EXCEED EXPECTATIONS” IN Q2

Safeway has reported net income rose to $145.8 million in the second quarter of 2011, compared to $141.3 million in the same period last year.

“Second quarter earnings results exceeded our expectations. Identical store sales improved during the second quarter and into the third quarter. We remain focused on building customer loyalty and expect sales to continue to gradually improve through the second half of the year,” said Steve Burd, Chairman, President and CEO.

"At the same time, our cost reduction and profit improvement efforts helped generate improved earnings results in the second quarter, and we expect these efforts to contribute to earnings for the balance of the year,” he added.

Total sales rose 7.1% to $10.2 billion, primarily due to higher fuel sales. Gross profit declined 155 basis points to 27% of sales, compared to 28.55% of sales in the same period last year.
For the 24-week first half, net income came in at $171 million, a decline from the $237.3 million posted in Q2 2010, mostly due to the $80.2 million tax expense on repatriated earnings from Canada. Excluding this, net income would have been $251.2 million. Gross profit margin for the first half was 27.26% compared to 28.48% for last fiscal’s first half. Total sales were $19,968 million, a rise from last year’s $18,846 million.
Source: Planet Retail

WALMART TO OPEN UP TO 300 STORES SERVING USDA FOOD DESERTS BY 2016

Walmart announced that it will open between 275-300 stores serving the Department of Agriculture (USDA) designated food desert areas between now and 2016. These estimates are based on the company’s current real estate plans. These stores, in both urban and rural areas, will provide access to groceries for more than 800,000 people living in food deserts.

Since 2007, the company has opened 218 stores serving food deserts. The projected new and existing locations, totaling about 500 stores, will provide access to fresh and healthy food in more than 700 food deserts and will serve approximately 1.3 million people living in these areas. To be included in this figure, a person must both live in a USDA designated food desert area and be within one mile of an urban Walmart or within ten miles of a rural Walmart store.

Many areas classified as food deserts are also job deserts. More than 40,000 associates will work in these stores once they are open. These full- and part-time jobs will provide competitive wages and the opportunity to build a career with the company.

The stores announced today have already undergone Walmart’s rigorous process for new store development and include store openings and expansions. The final number of stores will depend on local market conditions. Additionally, today’s announcement does not include stores yet to be considered through the company’s real estate process or stores to be built in Walmart’s new small format, Walmart Express. Walmart Express stores are designed to serve urban and rural areas and will likely address food deserts, but their locations are still in the evaluation process.

TESCO DETERMINED TO CONQUER CHINA

Tesco has opened a giant new logistics center in China and announces plans to open more than 20 new stores nationwide this year.

The British chain currently operates 96 supermarkets and 12 express stores across China, with its operations mainly centered around Shanghai.

But with last week’s opening of a 240,000 square meter logistics centre in the nearby eastern coastal province of Zhejiang, the company hopes to start expanding throughout the country.


In terms of stores Walmart is number one in China, after that comes Carrefour and then Tesco.
Walmart now boasts 333 stores nationwide, while Carrefour is now serving customers at 180 outlets across the nation.

The logistics center in the city of Jiashan will focus on the company’s 53 supermarkets spread through the East China region for groceries but will be able to deliver the company’s self-made products throughout the additional regional centers of Shenyang (northeast), Tianjin (central) and Guangzhou (southern).

Tesco is obviously keen to expand into a retail market which saw a 16.3% growth year on year in the first quarter of 2011, meaning it was worth $630 billion. Tesco is also planning to open an on-line shopping service for clothing goods across the country this September and online grocery shopping throughout Shanghai next year.

US: PEPSICO POSTS FLAT H1 PROFITS

PepsiCo's profits have come in flat for the first half of its fiscal year, despite top-line gains across its worldwide snacks and beverage businesses.
The company announced that net profit in the six months to June 11 came in at $3.03 billion. Operating profit leapt by 36% to reach $4.48 billion, while sales rose by 19% to $28.76 billion.

For the second quarter, net profit increased by 18% to $1.88 billion, while operating profits reached $2.75 billion, a 12% increase on the year before. Sales in the three-month period rose by 14% to $16.83 billion.

July 21, 2011

FRESH & EASY EMBARKING ON STORE REVAMP

According to The Financial Times, Fresh & Easy is embarking on an overhaul of stores as it looks to achieve its target of reaching break-even by 2012-2013. Tesco believes its key point of difference in the US remains its focus on fresh fruit and vegetables and freshly prepared meals. The overhaul of stores is aimed at highlighting this point of difference.

Under the plans, flowers will move to the entrance of stores from the centre currently. Space freed up will be filled with fresh produce and bakery products from an instore bakery in half of stores. Tesco plans to introduce instore bakeries across 100 outlets in partnership with baker Il Fornaio. The company is also testing fresh coffee to take away.

Tim Mason, Fresh & Easy CEO said: “The whole point about Fresh & Easy is that it is a very, very simple retail model. So, we were very wary about adding things in that appeared to add cost. What we have discovered with trials, and experience, and the benefit of being open, is that this is a cost that is worth adding.”

Tesco also plans to reduce health & beauty ranges to put more emphasis on food, introducing an additional 500 grocery products. A marketing campaign will be launched once the revamp is complete.

Tesco will also introduce glass doors on chilled cabinets in 100 stores and wood floors at one-third of outlets.

On profitability, Mason claims some stores are already profitable, although one-half to two-thirds of outlets would need to move into the black to achieve the break-even target.

COSTCO AND B.P.I. REQUIRE BROAD E. COLI TESTING

Tired of waiting for federal regulators to act, Costco and Beef Products Inc. are requiring broader testing for more strains of the bacteria in their food.

WALMART DE MEXICO Q2 PROFIT FALLS

Walmart de Mexico has reported a quarterly net profit of $374 million, down 3.4% from a year earlier. Net sales for the quarter reached $7.3 billion, an increase of 9.1% over the previous year.

EBITDA for the quarter amounted to $642 million.

With regards to the results achieved by the company, Scot Rank, Executive President and Chief Executive Officer for Walmart de MĂ©xico y CentroamĂ©rica said: “The second quarter of the year was characterized by significant investment in store openings, remodels, logistics, and systems, among others."

OBESITY IS BIGGER CAUSE OF BREAST CANCER THAN SMOKING OR DRINKING

Women who are dangerously overweight are at a far higher risk even than those who drink heavily or smoke.

Experts have long known that the excesses of a modern, unhealthy lifestyle can dramatically increase the likelihood of breast cancer. But now scientists have shown that obese women have far higher levels of cancer-triggering hormones than those who smoke or drink to excess.

Researchers at Oxford University in the U.K. looked at levels of cancer-triggering hormones including oestrogen and testosterone in 6,300 post-menopausal women.
On average, obese women had oestrogen levels 50% higher than those of normal weight. Testosterone levels were 16% higher.
Experts believe that fat tissue secretes oestrogen and another hormone, insulin, which in turn triggers production of testosterone.

The researchers, who looked at 13 published studies, also found that drinking two and a half units of alcohol a day - one large glass of wine - increased levels of some cancer-triggering hormones by 18%, but had no effect on oestrogen.
And smoking more than 15 cigarettes a day also raised the level of some hormones by a small amount, the study, published in the British Journal of Cancer, found.

A woman’s chance of developing breast cancer depends on a range of other factors including family history, age, time of menopause and whether she has had children. But scientists say that obesity is the biggest avoidable cause of the disease.

July 20, 2011

FIRST LADY TEAMS UP WITH GROCERS NATIONWIDE

A collection of retail heavyweights will join first lady Michelle Obama's campaign to bring fresh fruits, vegetables and other nutritious foods to the USA's "food deserts" — impoverished areas with little access to healthy foods.

National chains, including Walmart, Walgreens and SuperValu, and some regional retailers have agreed to open or expand more than 1,500 stores to bring more nutritious and fresh food to underserved communities. The companies' executives are joining the first lady at the White House today to make the announcement.

These changes will serve about 9.5 million people and could create tens of thousands of jobs, says Melody Barnes, director of the Domestic Policy Council. Currently, 23.5 million Americans - including 6.5 million children - live in low-income areas that lack stores that are likely to sell affordable and nutritious foods, she says.

As part of the efforts:

- Walmart will open 275 to 300 stores in food deserts between now and 2016, and already has opened 218 stores in such neighborhoods since 2007 , says Leslie Dach, executive vice president of corporate affairs. "The Walmart customer deserves to have access to healthy food at prices they can afford," Dach says.
The expansion is part of a comprehensive push by the retailer based in Bentonville, Ark., to promote healthier eating that also includes lower prices for premium products, such as whole wheat pasta, and support for charities.

- Walgreens will expand its food offerings to including fresh fruits and vegetables and other healthful choices at least 1,000 stores.
The all-purpose chain based in Chicago has begun pilot projects at stores in its hometown and in San Francisco to sell fresh, loose fruits and vegetables, prepackaged salads and fruits as well as sandwiches and partially prepared foods that can be cooked at home, Walgreens spokeswoman Tiffani Washington.

- SuperValu will build 250 Save-A-Lot stores over the next five years in areas that have little to no access to fresh produce.

The Department of Agriculture defines a food desert as a Census tract where 33% or 500 people, whichever is less, live more than a mile from a grocery store in an urban area or more than 10 miles away in a rural area.

"We know from the research that when people live in communities that have greater access to supermarkets, they consume more foods like fresh fruits and vegetables," Barnes says.
Penny Gordon-Larsen, a nutrition researcher at the University of North Carolina, says, "It's wonderful to provide greater access to underserved areas, but providing access alone may not be enough. These efforts need to be coupled with promotion, education and incentives for purchasing healthier foods."
Source: USA TODAY

NEXT UP: PORTIONED PACKAGING

Look for the next generation of portioned packaging to appear on grocery shelves soon, as well as splashes of whiskey in unexpected places, according to the latest news from Mintel. The market research company, which reported its trend update at the recent Institute of Food Technologists confab, says that portion control continues to be the least-talked-about nutrition guidelines, and that it expects companies to begin exploiting that soon.

"As companies respond to the new US nutrition guidelines, it appears that the most important issue is largely ignored by CPG companies: portion size," the Chicago-based firm writes in its release. "Hundred-calorie packs helped the U.S. consumer think about easy ways to control consumption, but today the packages are less focused on just 100 calories and more focused on providing additional benefits."

Mintel also reported that while the functional food trend still has some legs, with 56% of consumers having bought a functional food or beverage in the last three months, growth has slowed and the market appears to be stagnating.
Source: www.mediapost.com

WALMART CHINA APPOINTS NEW EXECUTIVES

Walmart has appointed a new chief operating officer for its Chinese operations following a string of top level departures in recent months.

The US-based retailer has appointed Sean Clarke as the new chief operating officer of its Chinese division. Clarke was previously head of finance for the company in Canada, according to a report on the Just-Food website.

It also names Steve Smith as chief marketing officer for China. Smith was previously senior vice president of strategy, marketing and communications with Delhaize.

COCA-COLA INCOME UP 18% IN QUARTER

For the quarter ended July 1, the company had an income of $2,797 million, up 18% from $2,369 million during the same quarter of the previous year. Net operating revenue was $12,737 million, up 47% from the same quarter of the previous year.

The North America segment had an operating income of $738 million during the quarter, up 46% from the same quarter of the previous year. Net operating revenue for the segment was $5,504 million, up significantly from $2,280 million during the same quarter of the previous year.

For the six months ended July 1, the company as a whole had an income of $4,697 million up 18% from $3,983 million during the same period of the previous year. Net operating revenue was $23,254 million, up 44% from $16,199 million during the same period of the previous year.

EUROPEAN UNION BACKS FRUIT AND VEGETABLES WITH MEDIA CAMPAIGN IN WAKE OF 'E-COLI CRISIS'

The European Commission (EC) launched a multimedia campaign as part of its €210 million compensation package to support beleaguered European fruit and vegetables growers, processors and retailers still reeling from the 'E-Coli Crisis'.

The late-May E.coli 104 H4 outbreaks killed 48 people in Germany and sickened about 4000, with a host of culprits from cucumbers to tomatoes named before Egyptian fenugreek sprouts were fingered as the most likely source and subsequently banned in the European Union’s 27 member states.

The EC campaign includes an AV package that include supportive comments from EC commissioner Dacian Ciolos as well as comments from traders and farmers and background information.

A print press campaign promoting the healthiness and safety of European fruit and vegetables will get a staggered launch in the 27 member states over these days.

“To help producers get through this difficult period, the European Commission has made 210 million € available for emergency funding. However the solution can only come from consumers re-introducing fruits and vegetables into their daily diet,” the EC said.

July 19, 2011

JUNE CONSUMER FOOD PRICE INDEX INCREASES 0.2%

The Consumer Price Index fell a seasonally adjusted 0.2% in June the U.S. Labor Department said.

The food index rose 0.2%t, the smallest increase of the year, statistics indicated.
The index for food at home increased 0.2%, with major grocery store food groups mixed. The indexes for fruits and vegetables and for meats, poultry, fish, and eggs both declined, and while the other major grocery store food group indexes all increased, none rose more than 0.6%.

The index for food away from home increased 0.3%.

U.S. supermarket prices for fresh fruits and vegetables fell for the third consecutive month, led by declines in tomatoes and lettuce, as fresh produce inflation eased from a cost spike earlier this year stemming from harsh winter weather. Average nationwide retail fruit and vegetable prices during June fell 0.4% from May.
Fruit and vegetable prices have declined as production returned to normal levels after freezing weather earlier this year killed crops in Arizona, Florida and Mexico, leading to shortages of some products. Prices for lettuce and tomatoes have been among the largest decliners, tumbling 3.1% and 6.1% in June from May, according to CPI data.

Fruit and vegetable prices remain above last year’s levels, reflecting accelerating food inflation that’s pushing Americans’ grocery costs higher for meat, milk and many other items.

Fresh produce inflation in 2011 is on pace to increase 3.5% to 4.5%, the largest increase since 2008, according to a recent government forecast. Prices rose 0.6% last year.

During June, fresh vegetable prices were up 5.8% from the same month in 2010, the 16th consecutive year-over-year increase, according to the CPI report. Prices rose by an average of 6.1% during the first six months of this year.

Fresh fruit prices were up 1.8% in June, the sixth year-over-year increase in the past seven months.

SUPERMARKET RESORTING TO OLFACTORY MIND CONTROL

A chain of supermarkets in Brooklyn and Staten Island (NY) has started piping in food scents to their stores in an effort to subliminally encourage customers to buy stuff. Scents you might smell in NetCost Market include "Lindt Chocolate," "Smoky Bacon," and "Rosemary Focaccia."

The scents and apparatus for delivering them are provided by a company based in Charlotte called ScentAir. According to their website, the scent system was developed by a former Lockheed Martin rocket scientist turned Walt Disney "Imagineer."

AVERAGE US MILK CONSUMPTION SLUMPS 8% IN PAST DECADE

Average milk consumption in the US dropped from 22.4 gallons per person a year in 2000 to 20.6 gallons in 2009 and will continue to slide over the next decade, according to Tetra Pak’s Dairy Index report for 2011.

More information on this week's edition of FOODSline (n. 26, 07/21/2011)

July 18, 2011

TESCO TO TEST LOYALTY CARD AT US OPERATION

Tesco is poised to trial a version of its successful Clubcard loyalty scheme in its US’s Fresh & Easy chain.

Tim Mason, chief executive of Fresh & Easy, said the business, which currently has 176 stores and will have 214 by the end of February next year, was ready to support a loyalty scheme.

It will be known as the Friends of Fresh & Easy card, but will be based on Clubcard.

Tim Mason, Fresh&Easy’s CEO, denied the loyalty card represented a strategic U-turn for Tesco’s US business, which has concentrated on delivering the lowest prices to customers rather than giving a discount through points earned with a loyalty scheme. “I don’t think it’s a U-turn at all, it is what Tesco does,” he told the Financial Times.

Mr Mason said the Friends card differed radically from anything in the US market, where customers are forced to sign up to loyalty cards to obtain lower prices on selected products.
The card could replace the coupons that Fresh & Easy has been using to help drive sales. It will be able to personalize offers and distribute them cheaply via e-mail.

The US loyalty card will build on the Friends of Fresh & Easy program that customers can sign up to, to receive fortnightly e-mails containing information and special offers. Some 360,000 people have become Friends of Fresh & Easy.

The new card, which offers one point for every dollar spent in Fresh & Easy, and rewards customers digitally rather than through physical vouchers, will be tested in Bakersfield, in central California, this autumn. If it is successful, it could be rolled out across Fresh & Easy by the end of February.

99¢ ONLY STORES PROFIT BOOSTED BY SAME-STORE GROWTH

US retailer 99¢ Only Stores said its fiscal first-quarter sales rose 6.3% while same-store sales grew 5.9%, driven by favorable effects from a later Easter.

For the quarter ended July 2, the company reported $368.3 million in sales.

The number of same-store-sales transactions increased 4.3% as the average transaction size climbed to $9.70 from $9.56.

The company plans to open 16 new stores in the current fiscal year, mostly in California.

TENGELMANN READY TO SELL A&P STAKES

German retailer Tengelmann's CEO Karl-Erivan W Haub announced the group plans to sell its 38% stake in bankrupt US chain A&P once it comes out of insolvency. The US food retailer entered bankruptcy last December.

Tengelmann does not expect to have a significant stake in it at the end of the process, Haub said alongside the presentation of its FY 2010 results.
Source: Planet Retail

WTO TRADE FACILITATION DEAL TO REDUCE TRADE COSTS AND BOOST TRADE

Director-General Pascal Lamy, in a speech at the World Customs Organization (WCO) in Brussels, said that the implementation of the Trade Facilitation measures discussed in Geneva could reduce total trade costs by almost 10%. “Every extra day required to ready goods for import or export decreases trade by around 4%.” This is why a trade facilitation deal would be a “tremendous value for our trading communities and in particular for many of our small and medium enterprises.” He commended the close cooperation between the WTO and the WCO, particularly in technical assistance, and suggested further collaboration in using the “Made in the World” approach to measuring international trade flows.

The “Made in a particular country” label on the back of a product should really read: “Made in the World”. “This new global reality forces us to re-examine how we analyze and measure international trade. At present, international trade flows are computed by attributing the full commercial value of a product to the last country of origin. This needs to change. The numbers we have today do not fully reflect the real picture of international trade in a globalized world. I believe there is a lot that we can do together on this front. Let me here invite you to visit our website “Made in the World” and share with us your thoughts,” concluded Lamy.

July 15, 2011

SURVEY SHOWS PARENTS FALL BEHIND CHILDREN’S CONSUMPTION

Parents apparently aren’t following their own advice, according to a fruit and vegetable consumption survey conducted by Meijer.

The retailer surveyed 1,300 shoppers. Six out of ten said they don’t think they’re eating enough produce.

The survey, conducted in June, showed 58% of respondents don’t eat enough fruits and vegetables. The reasons why, according to a news release, included cost and preparation, though 5% said taste played a role in their insufficient produce consumption.

Respondents with children, however, said their kids measure up. Forty eight percent said their children eat more fruit than their peers and 35% said their kids eat about the same as others.
Thirty six percent of respondents said their children eat more vegetables than others, and 40% said their children eat about the same as others.

Shoppers showed their knowledge of recommended daily servings, however. Two-thirds could cite the U.S. Department of Agriculture’s two to four recommended servings of fruit and 70% knew the correct amount for vegetables.
Source: The Packer

CHAIN RESTAURANTS SAY THEY WILL MAKE KIDS’ MENUS HEALTHIER

At least 19 restaurant chains said this week that they will include healthier options on their children’s menus. At least 15,000 restaurant locations will focus on increasing servings of fruits and vegetables, lean proteins, whole grains and low-fat dairy. The items will have less fats, sugars and sodium.

Less healthy foods like burgers and fries will still be on the menu, but the restaurants say they will do more to promote healthier options.

The effort is part of a new National Restaurant Association initiative to give kids more healthy options at restaurants and to make it easier for parents to find those options. Some of the items are already on menus, but restaurants will advertise them more prominently and flag the healthier menu items to make ordering easier.

To be part of the program, restaurants must include at least one kids’ menu item that is 600 calories or less and meets other nutritional requirements. A side dish worth less than 200 calories must also be included.

HISPANIC CONSUMERS SEEK AUTHENTIC MENU OPTIONS

Hispanic consumers place high importance on family dining options and the authenticity of Hispanic menu options, according to the “Hispanic Foodservice Consumer Trend Report” from Technomic.

“Simply offering a Hispanic-inspired menu item is not enough to attract Hispanic consumers, as more than one third of the consumers in our study actually disagree that the mere presence of Hispanic menu items will encourage them to visit a restaurant,” said Sara Monnette, director of consumer relations for Technomic. “If restaurant operators want to drive additional traffic and build brand loyalty among this rapidly growing and influential consumer group, they must understand their unique needs. Preparing and presenting Hispanic cuisine in an authentic manner and providing a family-friendly environment are two ways restaurant operators can build relationships with Hispanic consumers.”

The Technomic report included an on-line survey of 1,000 acculturated Hispanic consumers and a telephone survey of 100 Hispanic consumers who were not acculturated. Among the acculturated consumers 35% said they have a high level of brand loyalty and that they like to visit familiar restaurants and tend to patronize the same few concepts whenever they go out to eat.
Three in four acculturated Hispanic consumers said they purchased prepared foods at grocery stores once a month or more often. Nearly a third said they do so at least once a week. More than 40% of Hispanic consumers purchase food service options at convenience stores on a monthly basis. The availability of healthy options at both limited-service and full-service restaurants is important to about two-thirds of Hispanic consumers.

One section in the Technomic report explored the differences between various Hispanic cuisines in North America, Central America, South America and the Caribbean. The section also explored how U.S. restaurant menus showcase Hispanic cuisines.

The Hispanic demographic represents about $1 trillion of spending power in the United States, according to Technomic. Hispanic consumers comprise 16% of the U.S. population and that percentage is expected to reach 30% by 2050.
Source: FoodBusinessNews

7-ELEVEN REMODELS 1,000 US STORES

Seven & I-owned convenience chain 7-Eleven is renovating more than 1,000 stores in the U.S. As part of a new campaign known as 'More in Store', the company is upgrading its 7-Eleven stores on the East Coast with revamped coffee bars, hot food equipment and in some cases, updating stores' interiors with new walls, floors, ceilings, lighting and fixtures.

The four-month long renovation plan began in March and, according to the company, was a logistical marvel. Most stores remained open during the process, with each store upgrade taking no more than five nights to avoid busy times during the day. Some 60 stores were renovated each week.

In addition to various equipment improvements at 1,000-plus stores, 7-Eleven replaced floors, repaved parking lots or upgraded the exteriors of another 550 stores. Furthermore, some stores had already had hot food counters with new ovens, display cases and the expanded coffee bars, while other stores were adding these features all at once. While the remodeling project was underway, 7-Eleven employees in the affected stores received additional customer service training.

The company is also considering store remodel programs in other parts of the United States.
Source: Planet Retail

July 14, 2011

NEW 8-OZ ‘TRIM' CAN MEETS NEW USDA SCHOOL BEVERAGE GUIDELINES

A new 8-oz "trim" can from Ball Corp. meets the newly recommended guidelines from the USDA that specify 8 oz as the maximum serving size for beverages sold in schools. The new small, lightweight can is suitable for juices and other beverages for portion-conscious consumers, and is quick-chilling and recyclable.

The 8-oz trim can, which is a shorter version of Ball's 8.4-oz trim can, has a 202 can body diameter and a 200 diameter end. Ball's 8-oz trim can is designed to run on existing filling lines and requires no line modifications by customers. Ball will also continue to make its popular 8.4-oz size.

"We are committed to the North American beverage market and to meeting the growing demand for smaller, portion-control products," says Robert Miles, VP, sales, for Ball's metal beverage packaging division, Americas. "Ball's 8-oz trim can is a sustainable solution for customers looking to stand out in the marketplace and tap into incremental distribution channels."
Source: Ball Corp.

MORE THAN 2,000 ORGANIZATIONS IN SUPPORT OF MYPLATE

More than 2,000 organizations have joined the Nutrition Communicators Network, which launched June 2 coincident with the unveiling of the MyPlate food icon and is comprised of organizations actively committed to promoting healthy eating in accordance with the 2010 Dietary Guidelines for Americans, as symbolized by MyPlate.
Partners include public and private businesses as well as non-profit organizations that represent a diverse cross-section of stakeholders and partners.

FRESH & EASY HIRING FOR NEW CALIFORNIA STORES

Fresh & Easy Neighborhood Market is currently hiring for three new stores in California that will be opening in the next several months. The company expects to hire 20 to 25 people per store and is currently accepting applications for available positions at www.freshandeasy.com/joinus.

The new Fresh & Easy stores currently hiring include:
- Long Beach Boulevard & 5th Street Long Beach, CA;
- Atlantic Avenue & 33rd Avenue Long Beach, CA;
- Hesperian Boulevard & A Street Hayward, CA.

KELLOGG AHEAD IN DIVERSITY EFFORTS

A supplier diversity program at The Kellogg Co. has led to an eight-fold increase in Kellogg purchases from minority- and women-owned businesses since 1999, according to the company.

Purchases from these suppliers reached $425 million in 2010, the company said.

The company included an update on purchases from minority suppliers in its 2010 diversity and inclusion report, the second such report from Kellogg.

The report traces progress toward diversity objectives, including building a workforce “reflective of the consumers it serves and the communities in which it operates.”
Source: FoodBusinessNews

July 13, 2011

RESEARCH INTO SODA CONSUMPTION AND OBESITY IS CONFLICTED, REVIEW CLAIMS

The effect of sugary beverage consumption on body mass index (BMI) is difficult to discern based on current research, claims a new meta-analysis of randomized controlled trials published in Obesity Reviews.

Many studies have suggested a link between excessive consumption of nutritively-sweetened beverages (NSBs) and higher BMIs, but this latest research suggests that there may be a need for further randomized controlled trials (RCT) in overweight people in order to investigate whether the link between NSBs and obesity is causational. Randomized controlled trials are considered to be the most rigorous way to assess whether a cause and effect relationship exists between certain factors.

“The current evidence does not demonstrate conclusively that NSB consumption has uniquely contributed to obesity or that reducing NSB consumption will reduce BMI levels in general,” the authors wrote. “We recommend an adequately powered RCT with overweight persons, for whom there is suggestive evidence of an effect.”

A&P LAUNCHES LOCALLY RAISED MEAT BRAND

US retailer A&P has announced the launch of Mid-Atlantic Country Farms, a new private-label line of locally raised chicken, turkey and beef products at select A&P, Pathmark, Superfresh, Waldbaum's and The Food Emporium Stores.

"Our new Mid-Atlantic Country Farms brand offers our customers great tasting poultry and beef that is naturally raised on farms within close proximity to the communities we serve," Tom O'Boyle, executive vice president of merchandising, marketing, supply and logistics, said.

As the name implies, Mid-Atlantic Country Farms products will be raised and produced by farmers in the U.S. Mid-Atlantic region. All chicken products are raised antibiotic-free by Pennsylvania farmers. The beef products are all-natural, Beef Quality Assurance certified Choice Angus Beef produced by more than 140 family farms throughout Connecticut, New York, Pennsylvania, Maryland, Virginia and Delaware.

"This new brand of local poultry and beef is a direct response to our customers' requests for more 'green' options that offer a reduced carbon footprint and less reliance on fossil fuels," Harry Giglio, vice president of meat and seafood said.